Greetings, and welcome to the U.S. Well Services First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Question-and-answer session will follow the formal presentation. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Erin C. Simonson, Vice President, and Corporate Secretary. Thank you Erin, you may begin.

Thank you, Operator and good morning, everyone. We appreciate you joining us for the U.S. Well Services conference call and webcast, to review the first quarter 2022 result. Joining us this morning on the call, our Chief Executive Officer, Kyle O'Neill and Chief Financial Officer, Josh Shapiro. Following their prepared remarks, the call will be open for Q&A. Earlier this morning, U.S. Well Services released its first quarter 2022 earnings. The earnings release can be found on the company's website at www. uswellservices.com. U.S. Well Services also intends to file its quarterly report on Form 10-Q with the SEC this morning. Please note, that the information reported on this call speaks only as of today. And therefore, time-sensitive information may no longer be accurate, as of the time of any replay or transcript reading. In addition, the comments made by management during this conference call may contain forward-looking statements within the meaning of the United States Federal Securities Laws. These forward-looking statements reflect the current views of U.S. Well Services management. However, various risks, uncertainties, and contingencies could cause our actual results, performance, or achievements to differ materially from those expressed in the statements made by management. The listener is encouraged to review today's earnings release and U.S. Well Services filings with the SEC to understand those risks, uncertainties, and contingencies. Also, during today's call and webcast we will reference certain non-GAAP financial measures, reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release. And now I would like to turn the call over to U.S. Well Services CEO, Mr. Kyle O'Neill. Kyle O’Neill: Thanks, Erin and good morning everyone. Two years ago, this time, the outlook for the pressure pumping industry in the traditional energy industry more broadly, was bleak. The…

Thanks, Kyle and good morning everyone. U.S. Well Services averaged 4.7 active fleets during the quarter with the utilization rate of 94%, resulting in 4.4 fully utilized fleets. We exited the quarter with six active fleets and expect to average six to seven active fleets for the second quarter of 2022. Total revenue for the first quarter was $41.1 million, up from $38.9 million last quarter. While total revenue increased 6% sequentially, we saw service and equipment revenue increased 17% quarter-over-quarter, as we began to see the benefit of improving pricing for our services in late Q1. Revenue for material, such as sand, chemicals and trucking declined 45% sequentially, as we did not provide sand for any of our customers during the first quarter of 2022. Our cost of sales for the quarter is $40.7 million, down 2% quarter-over-quarter, from $41.3 million in the fourth quarter of 2021. Much of this sequential decrease was driven by lower costs for materials and reduced heavy equipment transportation cost, as we completed repositioning our fleet in Q4 to bring equipment to contracted customers for 2022 work programs. I would note, that we're definitely seeing signs of inflation across our supply chain. To date, we've seen costs increase 8% to 10% for most items versus 2021 levels. We believe we've locked in pricing for many critical components throughout the end of the year, will continue to be impacted by rising costs for fueled lubricants, as well as fluid ends and high pressure iron, all of which are exposed to surging cost of underlying commodities. SG&A was $8.3 million for the first quarter 2022. Net of stock-based compensation and other non-cash charges, SG&A was $6.6 million, which compares to $5 million for the fourth quarter of 2021. Sequential increase in SG&A was primarily related to…

Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] A moment please while we poll for your questions. Our first question is coming from the line of John Daniel with Daniel Energy Partners, please proceed with your question.

Good morning, guys. Thank you for including me. You've got the four fleets that come this year. I know you're probably reticent to given official forecast for demand for new fleets in 2023. But I'm just curious, can you with lead times as long as they are, can you speak to maybe some of the components parts, if you will, that you may have pre -purchased to potentially continue at new build program and at’23, any color would be appreciated?

Yes. Sure. Hey, John. So yeah, we do have some of the longer lead time components secured so that to the extent we wanted to react to some of the demand that we're seeing, we could deliver fleets in 2023. And based on what we have today, we could deliver those fleets in early 2023. However, at this point, we've not made any commitments to build any fleets despite the demand that we're seeing.

Fair enough. And when on the guidance for Q2, that's averaging six to seven fleets. I'm assuming that's including one diesel fleet or is there two in there?

That's one.

Just one? Okay. That's all I got. [Indiscernible] Thank you, guys.

Thanks Daniel.

Thank you. Our next question is come from the line of Alexandra Szabo with Stifel. Please proceed with your questions.

All right, thank you. Good morning, everyone. And thanks for taking my question.

Hey, good morning.

So just out of curiosity, can you just help us understand the drivers of the EBITDA per fleet and if you think it's possible that you could see break-even levels in Q2’22, and maybe the cadence moving forward for the rest of the year.

Yeah, absolutely. I mean, I think we put in our press release and talked about a little about the earnings call that we saw dramatic increase in our revenue, grew it beginning March 1st, and we continue to see that trend so far in Q2. That's brought our EBITDA per fleet up over our gross profit, I guess, over $10 million. And we continue to see that improve throughout the year. The big driver of increased profitability or at least the biggest leverage that we have to pull, is just getting more fleets out in the field. It's really spread our fixed SG&A costs over more fleets.

Thanks again and thanks for the color. Kyle O’Neill: Anytime.

Thank you. There are no further questions at this time. I would like to turn the floor back over to management for any closing comments. Kyle O’Neill: Thanks, everyone for joining. Have a great day.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference; you may disconnect your lines at this time. Have a great day.